Will This Gold Breakout Be Authentic?

Physical demand for gold and silver is strong as investors seek protection of wealth against uncertainty in the Middle East. It has already been reported that Col. Gadhafi has been a wise gold investor, preparing for this crisis by hoarding a large amount of the precious metal to fund his military and to hedge against economic sanctions. Just like he's been hoarding precious metals, many throughout the Middle East are trying to sell their assets and seek out the shelter of safe havens. It is being reported by the International Monetary Fund that Gadhafi has amassed one of the largest gold positions in the world. Libya's gold reserves are estimated to be worth over $6 billion, and the gold can be used to buy paid fighters. At a time when international sanctions have been increased, gold has been Gadhafi's store of wealth; he appears to have been ready for this day because Libya's holdings are much larger when compared to countries with similar demographics. Egypt (Market Vectors Egypt Index ETF EGPT) tried to reopen their markets but had to shut them immediately as investors are liquidating Middle Eastern assets (SPDR S&P Emerging Middle East & Africa GAF) for the safe haven of gold (ProShares Ultra Gold UGL) and silver (ProShares Ultra Silver AGQ). Continue reading the article.